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Worldwide Exchange

News/Business. Ross Westgate, Kelly Evans. Ross Westgate and Kelly Evans consider the business stories that have global significance. New.

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Us 24, U.s. 20, Europe 15, Spain 15, Apple 12, Italy 12, Paris 9, Ios 8, Oracle 6, London 6, France 6, Samsung 5, Australia 5, Uk 5, Hong Kong 5, Rome 4, Wayne Swan 4, America 4, Nomura 4, Ross 3,
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  CNBC    Worldwide Exchange    News/Business. Ross Westgate, Kelly Evans. Ross Westgate and  
   Kelly Evans consider the business stories that have global...  

    September 21, 2012
    4:00 - 6:00am EDT  

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. welcome to "worldwide exchange." i'm ross westgate. >> and i'm kelly evans. these are your he had lines. >> finance ministers negotiate the terms of a bailout. spanish banks will needless than thought and there's a plan to buy bonds. all of that on the table. >> rajoy heads to rome monti hoping spain's next move can take the pressure off italy. >> and the crowds are buildings as they lean up to be the first on the planet to get their hands on the new iphone 5.
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oh, yeah, 5's alive. there's been a bit of an issue about -- >> french workers striking at the iphone stores in paris. i would imagine apple is one of the few places where you do have some war gainifwa bargaining po days. p. >> silvia will join us and get the view on the spain sticky situation. >> and job cuts in europe. reports of just 30% will have to go and we'll get an expert view from the region. >> plus it is iphone friday except in paris where the striking workers may delay consumers from getting their hands on the latest model. >> and shifting into high gear
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in singapore ahead of the grand prix. and finance minister saying the country has no intention of asking for help from the bailout funds. today mar yonti will host leaden rome. and let's get out to silvia who is covering the story for us. what's the purpose of this event and can you tell us what we might expect to hear from the leaders this weekend? >> well, we get one meeting after the other. ever since we came back from the summer break, this is a jolly go round of meeting in berlin, in rome, madrid. after that, yes, we all are happy, we're all on the reform track. now a days we're very happy to the ecb to back stopping us and all is going to be well.
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but is there really -- is that really so he, is the ecb the big game changer or maybe has it taken the pressure off the politicians in a slightly perilous fashion? we want to check these things out with a professor from the university of rome here. thank you for joining us. >> my pleasure. >> now, we're meeting yet again. presumably no decisions to be made. maybe the bailout countries can compare notes with the nonbailout countries. but is this more than a marketing effort here today? sf . >> no, it is important for two reasons. one, in order to learn from each other, experience in terms of fiscal adjustment and what you can do in terms of sparing economic growth and, two, you need to find some sort of common understanding about the approach
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to the bailout. because we should not forget that if one of these countries, and this is not going to be the lit over the short term, is going to ask for financing, the others will be called to cop tribute sooner or later. and in the case of italy, you should not forget that we are funding the bailout of greece and other countries in spite of all the trouble we have in our own country. so it is extremely important first to learn, to have some sort of exchange of ideas and experiences, and second to have everybody on board on the same track that is to say fiscal adjustment, and economic growth. because these two factors will be crucial to restore confidence in the euro. >> everybody is always talking about germany paying for everything. but spain and italy, who countries that have their own
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troubles and of course france also paying large chunks. what we heard out of italy, no way are we going to ask for it a bailout. as you quite rightfully said, italy might not be the next one on the line, but we could get into a situation where yields are blowing up again and spain is under bailout and italy is pot. what is the ecb going to do then? >> let me say first that many people talk alwaysnpot. what is the ecb going to do then? >> let me say first that many people talk alwaysot. what is the ecb going to do then? >> let me say first that many people talk always about the level of interest rate on public debt. if you look at the average interest rate on public debt, there has been an actual decrease because of the easing on the monetary policy by the ecb. so to such an extent, the ecb has been crucial in deflating interest rates by the higher risk premium that is involved in the current levels of interest
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rates. so what the ecb can do. first, it can cut yields which means not total monetary financing of public debt, but the putting a lid which is uncertain because they have not clarified what it is, on the market. and this extremely important to change market perceptions about speculation on countries that are rather shaky. the second thing that the ecb can do is to provide strong support to bank union. and when i say bank union, i mean three things. first european based, european wide bank supervision. because there are many discrepancies and disparities at the present in the level of
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strin again strength against city. they go hand-in-hand together. can we reach the tree all at once any doubt it. you cannot say we'll have a common bank supervision and for get about the other two because they go hand-in-hand together. >> clearly at the moment the ecb with its verbal intervention, they promise an o.a.t. program and sort of rode it back into the core of politicians right now, have worked really well. mar at the times have calmed down, politicians in a way have calmed down you because they're not in such a hurry to scramble for the banking unit, now they can take time to get it right. do you think this was the big game changer everybody talked
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about? >> to some extent, yes. because this announcement have cut down the spikes in markets jitteries. in other words, the markets were very shaky, very jittery about the public debt of these countries. so this injection of less uncertain uncertainties has the market to review its expectations. but after the announcements, you have delivered this and this is the real test and this action cannot be taken unilaterally just by the ecb. the european council, european finance council, has to be on the same board and work in the same direction.
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>> i guess next stop is october the 8th when the esm will be formally set up and we see how fast they can deliver and what happens indeed to the reform process in the countries in question. thank you so much for joining us here today. that's it from us. back to you. >> more from her later in the show. meanwhile the financial times suggests the spanish finance minister is now locked in talks over a bailout. stefane has more from madrid. so what's all the rumor mill? >> the talks are on the structure reforms rather than the additional tax increase or spending cuts. for instance, according to roiter, one of the reforms would be focused on the pension system. the government would accelerate the transition from 65 to 67. the process was supposed to take 15 years. it will take less than that. the other points on which the government is now ready to
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negotiate is to freeze the pensions, the government would down have the annual link which would save approximately 4 billion euros per year according to this report. the announcement could take place next thursday when the government is going to unveil its budget for 2013. over to you. >> all right. stefane, thanks. spanish government may use leftover funds from 100 billion euro banking bailout to buy its own debt. and the banking sector may only need 60 billion euros available to shore up investor confidence. joining us now is martin ashworth. thanks. using bank bailout funds to buy government debt. ? >> i think it's been ruled out already by the eu. no way they will allow that to happen. this is bank bailout monies.
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>> so why is the story coming out? >> it's the spanish go. and i think it's all a big game to see if they can have germany get into a deal that doesn't require more onerous taxes or spending cuts. >> what's interesting about the bank recap plan itself, it's a form of a back door bailout that doesn't require those kinds of aggressive austerity moves. >> it's done to keep spain happy and in the sense it's the first time they've done a specific bank not a government bailout. it's a whole change in the rules that we're asking for. >> give it all to the banks and the banks can -- >> we tried that. >> but this is just a different form, isn't it? >> that's why it's not going to happen and it's clear spain is just trying to push their -- >> even just the bank recapitalization plan itself is effectively the form of a bailout because if you give banks enough money, they'll be able to turn around and buy the
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sovereign debt anyway. >> it's not quite that simple. the spanish banks aneed to take bad loans off the balance sheet and this is what this deal has to be about. otherwise this is the fourth/fifth bank bailout idea the spanish have come up with. >> but what incentive is there to write down those loans if it they're getting capital some good they a? >> they're not getting anywhere near capital. house prices are nowhere near fallen as the u.s. or ireland, which are two comparable boom real estate and then bust economies. our house prices are still falling, yet spain is nowhere near reality. and that's the trouble. all the numbers coming out are simply not going to be true. they'll be much, much bigger. >> we have a budget on september the 28th. there have been noises from the spanish government suggesting that will budget will meet all
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kind of conditionality needs. how is that going to play out? >> not a chance again i think. simply put, the first half of the year, the deficit to gdp was at 4%. fully on tar get of 6.3 will be missed by a country mile. that's probably why the 28th is key because it has the two things, the budget details, how they're doing so far in 2012. and at the same time, the report on the banks. that possibly could be a day that ro ohio oig has to admit and take -- >> and as far as you're concerned, no bottom in sight here for the economy. >> absolutely no way. >> all right. martin, thank you so much for stopping by this morning. >> if you have your iphone 4s, the question is do you have the 5 yet. apple has launched its new
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smartphone. crowds stretched around the block. even apple co-founder steve wozniak had to wait in line buying his at store near brisbane. jon fortt sent us this report. >> today is iphone 5 day, the phone already on sale in some locations. nine countries this time around are launching the iphone. it was seven a year ago when it was the iphone 4s, but with the iphone 5 launching in nine countries, besides the uts, we've got australia, can in a today, france, germany, hong kong, japan, singapore and the uk. 8:00 a.m. local time is when they go on sale, so asia will be getting it first and then of course the rollout will happen globally in all of those countries. now, we're looking at long lines that began forming earlier in the week. and part of the reason for that of course is that pre-orders shut down pretty quickly if you hoped to get your iphone
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delivered in the mail today within about an hour on apple's retail site. that got pushed out to a week from now you have to get your phone if you wanted to get it by mail. so a lot of people who want to have it the very first day, they realized they had to camp out and we saw the lines forming. a bit of controversy as people updated to ios 6 starting a couple of days ago, they started to see that, all was not well with the maps app. we're starting to see several images online of poor location mapping in the new eos 6 maps app, and that has apple's back end, not google's back end. blogging popping up specifically mocking these locates that the maps are finding. particularly in international locations. apple's maps not performing that well. so we'll see if that affects enthusiasm for the iphone 5 at all. a number of people also on twitter saying that they're not
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going to upgrade their operating system from ios 5 to ios 6. normally in the past we didn't see that quite as much. guys, back to you. >> in the meantime apple's rival sang sum is greeti samsung is dialing up its lawyers. sounds like there's still more courtroom litigation ahead of us. >> that's right. talk about raining on apple's parade. the iphone 5 is going to be added too the list of products that samsung claims violates its patents. so by bringing a new product list to the u.s. district court in california, a second round of the patent war is unfolding with a trial set to begin in march 2014. samsung shares rose on the news which is a bit of tit for tat. apple has added the galloaxy an
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others to its list. with all this ongoing litigation, observers say their products won't be forced off the shelves for some time. but it seems to be affecting supply relations. apple has sharply scaled back on using the samsung panels for ipads by 76% since may. sending orders to lg instead. so this rivalry appears to be getting more serious between the two parties. back over to you. >> thanks very much for that report. ross. meanwhile here we are just an hour and 17 minutes into trading day in europe. green on the board. ftse 100 down just over half percent yesterday. currently up. you can see nearly 8:2 advancers outpacing decliners. xetra dax pretty flat yesterday.
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ibex up two-thirds of 1%. as far as yields are concerned, they are slightly lower. 5.72%. just on the 5.019%, for italy. we have got figures in the uk shortly. bearing in mind we have governor mervyn king's thoughts last night suggesting it would be right for the targets for fiscal deficits to be missed if it wasn't your fault, if it was because of the global economy. so we're now thinking maybe we will start to see the government just rejigging its targets in the uk. we'll talk about it on the show. just reminder where we are with the euro dollar. right now trying to edge a little higher. 129.61. clawed back some previous losses. dollar-yen, 78.15. aussie dollar, 104. been around there two or three
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sessions. what about the asian trading day? only p one lady who can fill us in. >> asian marketed clawed back to end a choppy week of trade. the shanghai composite rebounded just by a touch after hitting a fresh 43 month low. miners and electricity stocks led the games, but stocks with military concepts tumbled as investors took profits. developers and industrials pushed the hang seng index higher. telecoms also outperformed as sales of the new iphone 5 kicked off day. reports intel in talks to invest over $380 million in the cash strapped firm, but losses in securities and steel makers capped the up side on the market. over in south korea, well, continued strength in health care and consumer stocks bolster
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the kospi. the aussie market ended marginally higher helped by utility stock, but miners paired back earlier gains. back to you, ross. >> okay. thanks for that. we'll take a short break. still to come, a reason to cheer for apple fans as the iphone 5 goes on sale. some customers in paris might have a slightly more difficult time getting their hands on a model. we'll find out why. bob...
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oh, hey alex. just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no need to get nasty. here's your "honk if you had an affair with taylor" yard sign. looks good. [ male announcer ] fedex office. banners.
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take a look at the price of oil. brent and nymex both down. so what's going on with the commodity space? >> i don't think anyone has a perfect goexplanation for quhaw
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happened. speculation was at close to record highs before the fed came in about that that's one reason. i think the second reason is saudi tries to tap the market done, they're realizing that high oil prices are hurting economic growth and offered more barrels to their main customers. they can still in the short term talk the market down. maybe net speculative went into the market to come out. >> is it your view that this cleaned out sort of those technical factors or those are now priced this and fundamentally they're still going to be support for oil prices here or perhaps even higher? >> we do think there is a lot of support for oil at the current levels. when you look at the market, it is still in an environment that is very supply constrained. even though we might not be feeling it right now.
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we have a very heavy refinery maintenance season coming up in northwest europe. >> we've got the markets tight. so what happens if the global economy ever recovers so? >> oil is the one commodity where production growth is by far the lowest. iron orore, coal, they've grown. it's low production growth. >> it's reminiscent of the argument different factors, but there's also a strong term argument for gold being higher. we heard colleague of yours talking about it could go to 3,000, 5,000 an ounce. they continue to get dragged out in the near term.
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so at the what point do the long plays start to work? >> we think prices will stay supportive at the current levels, but growth is too weak to suggest oil prices going to 120 and staying there. so the best long story for commodity markets, in the type of aggressive monetary policy easing environment that we're in, the fed has done with an open ended qe, what the ecb has done, you really want to be invested in gold. and we have a target which we've had for quil a while and we just released a target of gold of 2400 because of all the buying that we see the fed doing. >> okay. thank you so much for coming by. and stick around, because still
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to come on the program, sterling trading higher. the uk public sector finance data pushing it lowlower? we'll bring you the numbers. it
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. reports that finance ministers negotiating the terms of a full bailout. spanish banks will needless capital and there's a plan to buy bonds on the table. >> rajoy is meeting with leaders of the highly indebted nations. mario monti is hoping to keep the spotlight off italy. >> and the crowds are building as people in parts of asia and europe and the u.s. line up to be amongst the first to get their hands on the new iphone 5. we have borrowing figures out. mervyn king. public sector net weborrowing 14 billion. less than expected. still the highest for any since records began. no one's now thinking that the government will be on track to
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meet their targets for the year. but you get a lot of revisions of course coming through and -- >> and with the olympics and everything going on, you don't know if it there are some wow factors. >> but the point is that whatever happens with these numbers, the bank of england marvin king has given his blessing to miss the targets while the recovery has a long way to go. the eurozone crisis has cast a dark cloud of uncertainty is what they say. >> we don't have a krystal ball at any point. what's happened since 2010 which we did not expect, we knew there were risks, but what we didn't expect were two things. one was the very large increase in energy and food prices in the world economy, pushed up our gas and electricity prices and inflation in turn. but also the crisis in the euro
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area became very much worse. and that damaged our economy because it reduced the demand for our about ports to europe and the euro area and countries around them account for around half of our exports. and actually our banks are quite exposed to the euro area. they've lent a lot of money it to the people in the euro area. >> but what can be done to help the economy grow? i caught up with the secretary of state and asked him how much more the government immediates to do to support them. >> we have a very dynamic small business community and why else would we have despite little growth. we have a very enterprise friendly system. but they continue to get difficulties, getting access to finance and that's why one of the in addition itcheses i want
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to start up with the start up loans, 2 1/2 thousand pound loan. we've already had 1200 companies registering for it and this is for young entrepreneurs. so, yeah, there are continuing problems mainly on the finance side. i think we have a very entrepreneurial country and it's a source of strength. >> is the government going to have to put money in or is this schemes that already exist? >> no, there will be a lot more than just business screams. the underlying problem is that there's a funding gap. the banks are more conservative in their lending. maybe something over 50 billion what has been the estimate. there's a big gap in the wholesale market.
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something maybe government can t contribute to. but the sale and scope, the chancellor is fully committed to it. and we'll be rolling that out. we're on the same page. i've been very actively deregulating since i came into my job. the announcement we made a couple weeks ago was something that i already agreed with my colleagues in government. and as far as employment laws, we come want to make it easier for small companies in particular not worrying about it going wrong. and that's why we're -- >> this entrepreneur's event, this is where you were yesterday. you left me flying solo.
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but you did get to speak vince cable. >> did you ever see the film the full monty? >> i haven't actually seen that. >> you're too young. >> i've seen so few movies ever. >> it was a great event. prince andrew was there. and actually more importantly, there was some great, great uk entrepreneurs with great businesses. >> we've seen a lot of talk of entrepreneur, on the front page of newspapers saying this is the cool hip thing to do. which is a good sign. >> the ipo market in the uk is
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pretty stinky really. >> and how many different countries are loosening ipo standards. but you wonder if we think of it as a misallocation of capital perhaps. in any case, cutting back on globals aspirations. nomura is aiming to cut 30% as part of it plan to slash a billion dollars in costs. sources tell cnbc nearly half of the brokerages cost savings are set to come from the europe, middle east and africa. joining us from hong kong is peter, assistant editor. thanks for staying around late for us today. dunk these rumored cuts more indicative of nomura's particular struggles or does it fit into the scene more broadly of more layoffs in the financial sector?
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>> nomura is not alone looking at things to cut. they're probably in a less strong position going into the whole downturn, probably have to go earlier and further and then take more dramatic decisions than some other banks. but no doubt this is an industry wide trend and it will continue and other banks will make cuts. >> what does that mean ultimately for the future of a lot of these employees, for the future of a lot of these global cities including obviously here in london that are so heavily reliant on the financial services industry? >> i think it's an interesting question. clearly nomura launched snapping up european assets of lehman brothers or at least the people and is now basically pulling back sort of servicing more -- concentrating on the areas where it's relatively strong, concentrating more on maybe
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dealing with japanese companies, doing deals outside japan. everybody else will also also have to specialize and pick the areas that they're good at and the idea of full service investment banking where you have a bank that tries to do everything for all clients in every part of the world, that will become harder and harder too sustain. so i think it means financial centers will suffer. london is a bit vulnerable because they're the industrial center. so if there's a general shrinkage in the industry, that will be felt in london. >> how do you make sure that good people don't walk out the door, as well? or if you're good, is it hard to get a transfer?
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>> that seems to be the calculation a lot of people are making. the people we want to keep will stay because they don't have any other options if everybody else is going through the same thing. clearly some of that happening. i think the danger is that you get between people who get disillusioned and leave the industry and we've seen a number of people basically sort of retiring. now, they may pop up again elsewhere and then they go into fund management or find themselves in some other kind of financial job. or they may do something completely different which may not an terrible thing. but obviously if you're a bank trying to shrink instead of hang on to your better people in doing so, it's quite a difficult balancing act. >> hong kong is now your new home, so i hope you've settled in well. thanks for staying up late with us. i'm just wondering, though, what's going on with the investment bank business there? because there's been big
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expansion over the last few years. has it paid off or is it now regretted so regretted? >> i think asia is suffering many of the same features it's suffering elsewhere. overcapacity, not enough revenue, poor returns and cut backs. and really i think what happened here is that people saw it as a growth opportunity and were investing quite heavily and were willing to make losses on the assumption that there would be profits coming down the road. and of course what's happened, that was okay as long as they were making money elsewhere. people started reassessing their businesses and saying, well, we're not making any money, is there any prospect of us making any money. and for a lot, the answer was no. so not any capacity coming out, people losing their jobs. banks are shrinking. and it will be a question of
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specializing, focusing on what you're good at and the areas where you have the strongest market position. >> peter, good to see you. thanks for that. have a good weekend. iphoiphone 5 is on sale. michel michelle kosinski is in the french capital with more. we have staff who are refusing to work. what's their gripe? >> yeah, you know, it's a confusing situation because there was expected to be something of a general strike. there were talks late yesterday and at that point, the smaller union that represents about 25% of apple workers here said, yes, they are going to have a job walkoff. they were complaining about long
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hours being paid for fewer hours than they were actually working. not getting a 13th month of pay which they say is standard for workers here in france. in fact, last week workers were complaining about things like saying that working at an apple store is kind of like working in a coal mine. they're under constant pressure to sell but don't make any commissions. they were also asking for things like meal voucher, water fountains. and apple has been really resistant to even give them things that most other french workers have access to. so the smaller union was planning on having about 30 workers walk off the job today, but it looks like that didn't even happen. and keep in mind there are about 1,000 apple workers total in trance. when you get to the apple store, there is a big protest going on outside. that's what's confusing. but those people worked for a subsidiary contract phased out over time by apple putting about 100 people out of work.
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so those that used to work for a company that supplied to apple are angry, but the workers themselves are on the job today. back to you. >> okay, thanks for that. looks nice there this paris. >> if the workers are on the job, apparently no major disruptions. but they want 13 months of pay and lunch vouchers. >> what's wrong with that? >> well, we'd like that, too. the world retail congress is currently under way in london where some of the biggest names in the industry are discussing future trends and the big theme this year, technology. from mobile payments to social media, it seems every retailer big and small is getting in on the act. and mastercard is one company offering consumers a whole host of new ways to pay. i caught up with mastercard's president of strategic alliances. >> the big retailers, people like tesco, metro, saks fifth
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avenue, these are organizations that really get this and are really investing very heavily in the space. i think in terms of some of the smault e smaller retailers, there are so many of them availing of themselves in a way to technology that they've never been able to do in the past. when you think about the likes of groupon and many such organizations who really have come out of nowhere to be a profound player in the retail space. >> they may be getting new ways to pay, but are consumers still spending? i also brought up with phillip green who owns brands like top shop and asked him where he is seeing growth today. >> growth overseas over the next sort of two to five will be significantly bigger. a, because we're pretty mature in the uk. and we're not in any other market. so just logically.
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i expect us to grow, america, we're in an interesting moment. we just started with nordstrom as you probably know which is now eight, nine days old. we're only in 14 stores and online. we're building in laeos angelesn the growth. negotiating several other locations. so i think america is a growth potential for us. >> do you think that should you have been quicker to move into asia? >> in hindsight, we'd all be doing something different. >> does that mean you'll be aggressive in catching up with your locations? >> we won't be aggressive anywhere. i think we'll be careful, considerate like we've been this america. i don't think we've missed a lot. i guess we were not there at the beginning, but talking to a lot
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of people. i think this is probably the right time for us to be going there. >> interesting there talking about hindsight. but i also asked if he was considering an ipo for his company anytime soon. and here's how he responded to that. >> i never thought about it. >> really? you've never wanted to access capital or just the new base of investors? >> i think we've been fortunate that we have capital and we've been able to do whatever we've been able to do. we're sort of looking at we could double or triple our investment in america next year out of our own money. we're not heavily borrowed. we're not geared off the roof. so we haven't been through any of that. we've borrowed money, we've repaid, we've invested. so we don't need the markets for
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that. >> he says they don't need it. they're doing just fine. >> he doesn't want outside investors telling him what to do. >> exactly. speaking of doing fine, take a look at the retail sector. an impressive run over the last couple months. the stocks retail index up 18% from a year earlier. i believe that latest trade was the same yesterday. in the u.s., a more positive picture. the u.s. retail index up better than 22% this year. walmart is hoping to open in india within two years. the announcement comes just days after the indian government opened up access to four supermarket chains. walmart is confident india's retail reforms will become permanent. on the agenda in asia on monday, japan central bank will shed more light on its recent aggressive policy decision when it reveals its meeting minutes
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in hong kong. prada posts its numbers. and the latest optimus g. singapore counting down to the state's biggest events, the singapore grand prix. ahead of the race, martin found a way to hitch a ride in a million dollar super car, but he may have little idea what he was signing up for with lewis hamilton at the wheel. >> t . >> some of the biggest and richest companies in the world are sposponsors, but the most important thing is i'm getting in the car with liulieewis hami and we're going to burn some rubber.
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>> a little jealous there, ross? just a tiny bit? >> i'd like to have had the opportunity to see. >> some day. ddd#1
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this is called "worldwide exchange" and we spend a lot of time look at trades. and want to bring you this news out of the wto. s it's taken done it forecasts to just 2.5%. this is global trade, not just
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gdp. global trade seemed to grow just 2.5%. down from the 3.7% forecast. 2013 marked down by also a percentage point to 4.5% from 5.6%. and head of the wto saying the main reason is because of a slowdown in europe. and japan is not in great shape. but that 2.5% figure remarkable. we come have our trade link series. it airs mondays at 10:50 central european time. 9:50 here in london. more at tradelinks.cnbc.com. the bid for mi might get the green light as early as today, but the potential takeover is not without conditions. universal will have six months to sell off at least a third. this all according to financial times. but what is going on for the music industry particularly in
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terms of addition? one company called music metric has launched the digital music index. joining us is the ceo. you've just launched digital music index this week. how do you -- where do you get all the data from? there are so many different channels about where people are getting downloads from, some legal, some illegal, how are you able to come up with a detailed picture? >> actually that's the really challenging and interesting thing. the opportunity and tracking exactly what's p happening online with all the different channels including the pirated downloads, but more importantly the legal downloads. so essentially using metric, we just listen into the web. what people are listening to, where they're playing music, where they are around the world, what their demographics are, just to give a really good
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picture. >> so from itunes to listening to something on a streaming website. and then in the way we used to look at the billboard top 40 charts or whatever, you get a sense from the digital world. >> and trying toing a g ing a a thousands. >> there is no money to be paid ma from selling music and you have to do it from am answer. what is happening with revenues? >> revenues are more healthy this year than they have in the past. revenues are very important and to really understand how the fans interact and what they like, where they are, can really help hone those.
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>> maybe knowing this is useful if you now view musics as the marketing and it's the brand that you might push toward the artist, you you say that's my way on get to them and you can analyze what i could maybe put else down to the pipe to them? >> exactly. and part of a lot of the news headlines we've been having recently is the 400 billion downloads. that's 400 million songs already played. and that's a huge opportunity for the industry. and just like the industry selling to consumers, understanding those people better will really help. >> and the number of times people listen to these songs, u.s. a top offender there, how do they then bring them into the fold some is there any sign that
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piracy is slowing? >> yeah, piracy is slowing and the posters that have legal services like streaming services which is low cost, low barrier to entry, places like the u.s. and uk are actually shrinking slightly. >> good talking to you. thanks for joining us. ceo at music metric. still to come, it's been a week of mud slinging in the u.s. presidential election. we'll take a look back at the latest finger pointing next. bob... oh, hey alex. just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad
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we're both running a nice, clean race. no need to get nasty. here's your "honk if you had an affair with taylor" yard sign. looks good. [ male announcer ] fedex office. now save 50% on banners.
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if you're just joining us, i'm kelly evans. >> and i'm ross westgate. >> crowds are building as people in parts of asia, europe and the u.s. line up to be among the first on the planet to get their hands on the new iphone 5. >> suggest ministers negotiating the terms of a bailout. spanish banks will needless kacht and there is a plan to buy bonds. >> rajoy is meeting with leaders of the highly indebted nations. mario monti is hoping to keep the spotlight off italy.
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dow jones poised to add about 60 points taking fair value into account there. nasdaq and s&p 500 also pointed to a higher open. interestingly enough, fridays have been relatively good day for the markets in the last i think we've had a very much of five or so where we've seen gains for the day. ftse global 300 pointed up by half a percent, so the theme has been consistent across the board. europe, same thing. major bourses, dax and ftse up about half a percent. cac 40 up 0.8%. pretty much a mirror image today
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of what we saw at the start yesterday. >> let's take a look at the bunds. spanish yields on a slightly lower, 5.75%. ten-year italian bonds just a little bit higher. 5.01 earlier. 5.04. we heard from marvin king he thought there would be arguments to the government to allow targets to slip a little bit. is it wasn't their fault because the weakness of the global economy. euro-dollar at just over the 1.30 level. it has spiked up in it the last half hour or so after a session high. dollar-yen still at 78. aussie dollar also firmer. so dollar weakening pretty much across the board here in the last half hour or so. sterling-dollar also firmer. back up to 1.63. so there is signs of a little bit of dollar weakness just
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coming out in the last hour. what about what happened in asia today? >> asian markets staged a rebound but still down 4.6% for the week. miners led the gains. but military related stocks tumbled as investors took profits. hang seng had its third straight weekly gain. energy plays and industrials rallied. the nikkei added a quarter of a%. intel is in talks to invest over $380 million in the battled firm, but capped gains on the japanese market. over this korea, continued strength in health care and consumer stocks bolstered the kospi. samsung rose over 1% after it
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added apple 5 to its u.s. lawsuits with apple. miners paired back early gains. sensex higher by 2.4% at the moment. that's all from me. >> okay, hangs very much for that. we should do a correlation between apple launches and global market activity, see if there's something to it. in any case, it is iphone 5 launch day. do you have yours yet? apple has launched its new smartphone in europe and asia. crowds outside the store in sydney stretched away the block. and even steve wozniak had to wait it in line buying his iphone at a store near brisbane. jon fortt filed this report. >> today is iphone 5 day, the phone already on sale in some locations. mine countries this time around are launching the iphone. it was seven a year ago with the 4s. but besides the u.s., we've got
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australia, canada, france, germany, hong kong, japan, singapore and the uk. 8:00 a.m. local time is when they he go on sale, so asia will be getting it first. and then of course the rollout will happen globally in all of those countries. we're looking at long lineses that began forming earlier in the week and part of the reason is that of course pre-orders shut down pretty quickly if you hope to get your iphone delivered in the mail today within about an hour on apple's retail site. that got pushed out to a week from now. so a lot of people who want it the first day, they had to camp out and you started to see those lines forming. now, a bit of kers city as people updated to ios 6.
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all was not well with the map app. starting to see poor locations happening in the new ios 6 maps app. but that has apple's back end, not google's back end. even blogs popping up specifically mocking these locations that the maps are finding, particularly international locations. apple's maps not performing that well. so we'll see if that affects enthusiasm for the iphone 5 at all. a number of people also on twitter saying that they're not going to upgrade the rating system from ios 5 to ios 6. normally in the past we didn't see that quite as much. guys, back to you. >> later in the show we'll go to the apple store in new york city where fans have been lining up for days. that will be at 5:45 a.m. eastern time, ross. president obama meanwhile leading mitt romney in three more key swing states according to the latest nbc wall street
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journal maris poll. the president is edging romney in colorado and wisconsin by five points and iowa by eight. and the poll was taken this week amid the controversial romney secretly taped remarks earlier in year. conservatives are ramping up their criticism of romney. peggy noonan says he needs someone new to run his campaign. joining us from washington is sarah fagan. good morning. so the gop here, how much pressure is mitt romney under? is there a sense of panic? >> well, he's under a lot of pressure. he's had a tough couple weeks. and the good news for mitt romney is that he's having this in september, this sort of vehicle of bad gaffes, and not in october. so we're about 48 days from the election. it's an eternity. he can right his ship. but there is some concern.
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>> tell pawlenty -- i'm sorry, not -- some of the gop candidates during the primary season who were completely written off. rick santorum is who i'm thinking of until the very end and then they have this resurgence. is there any way in which this plays well for mitt romney and he's able after kind of almost like the market kind of discounts all the bad news and then suddenly expectations turn around, there's some sort of catalyst and he peaks at a better time? >> often in politics the counter punch is stronger than the punch at you. and i don't think mitt romney has yet seized on some of the opportunities the obama campaign has represented. but i disagree with peggy noonan. i don't think the problem is with mitt romney's staff. i think its e's the candidate w has made some gaffes and those
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are costly at this point. that said, we have debates coming up. i think that will completely reset the narrative in this race if mitt romney gets out there, has a very strong performance and dominates particularly that first debate on october 3rd. >> that debate becomes a sort of must win, doesn't it, for romney now. will is high stakes poker. >> it is high stakes poker. and you're right, because of the events of the last few weeks, the debate takes on an even bigger importance to the outcome of the election for romney. so the president's campaign has been smart about setting expectations. you see them all over television news including on this network setting expectations, talking about what a good debater mitt romney is, talking about how president obama wasn't in the last campaign. and so they're already setting expectations for romney to do
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really well and in a even ups the ante further for the performance of governor romney. >> how much is the fact that the economic data hasn't got a lot better, but the stock market has rallied. how much is that going to help the president? >> well, we've seen in the last nbc "wall street journal" poll earlier this week that there is a sense of renewed optimism in the economy for the president obama. it's slight, but trend lines are very important in these campaigns and for the president, this is a good time for him to be catching some good economic news here in the u.s. >> we do have 48 days here and the poll is starting to look at these swing states in particular. what to you is going to be the most important place to watch
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for as a gauge really as we head into the final stretch? >> i look at three places. ohio. no republican has won the white house in modern history without also carrying ohio. i look at iowa, too. and i saw in the last poll the president had taken quite a bit of a lead there. again, it's very early. but i always tiowa knows barack the best. they launched him. so if you see that state tighten up and you see the voters in iowa sort of start to turn their back on the president and give mitt romney an opportunity, i think that bodes very poorly for the president. and then of course florida. just given its electoral dom mans, giv dominance, given the economy is worse in florida, you would expect mitt romney it on do better in. so i look at those three states as the place that will determine
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the election. >> all right. sarah, thank you very much for joining us this morning. well, staying with u.s. politics for a moment, a surprising voice of criticism. australia's treasurer wayne swan has joined the fray saying the greatest threat to the global economy are the, quote, cranks and crazies that have taken over a part of the republican party. wayne swan is a liberal down in austral australia, but his comments certainly raise eyebrows. were they appropriate and do they say more about the gop or more about wayne swan? let us know here on "worldwide exchange." e-mail us or tweet us. i'll point out one australia commentser on twitter said he'd prefer to have chris christie running things down under. ross. >> we'll take a short break. meanwhile the iphone 5 officially on sale across europe and asia. but in paris, it has provided some excuse for some apple store
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workers to go on protest. we'll find out what's going on. bob... oh, hey alex. just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no need to get nasty. here's your "honk if you had an affair with taylor" yard sign. looks good. [ male announcer ] fedex office. save 50% on banners.
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welcome back to the program. the iphone 5 on sale across europe and asia.
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crowd s gathering ahead of stor openings in the u.s. and oracle's strong software sales offset weakness in hardware. >> the iphone 5 is officially on sale, but those in paris might have been facing a few problems earlier this morning because the new launch has provided the excuse for some of the workers in the apple store to come out and protest. michelle kosinski is in paris with the latest. what has been happening this morning? those viewers in the united states waking up, why are the apple workers in paris upset? >> for the last week, they've been extremely it is grunt he willed. all over the french media, they've been meeting with different management, complaining, in pact one of them was quoted as saying working at apple is like working in a coal
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mine. they've been complaining that they have to work longer hours than what they're paid for, that they don't get any commissions uneven though they're under constant pressure to sell. they're monitored by cameras in the stores and looking for things like a 13th month of pay as a bonus, higher pay and water fountains in the store. some of these things are standards for french workers, but they're complaining that apple has been extremely resistant to provide them these things. in fact they say they've been fighting for three years for the 13th month of pay. so at the end of yesterday, there was a sort of last resort meeting at which it was decided that these issues would be revisited before the end of the year, that the company would consider them if workers did not walk off the job today. it wasn't enough for the smaller union representing about 25% of the 1,000 or so apple workers in france. they still had planned to walk off this morning. but apparently that didn't happen.
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however, when people went to the store this morning to line up to get their iphone 5, they did find a protest outside. a pretty big one. and noisy, as well. but those were not apple workers. those were workers from a different company whose jobs were phased out when apple started opening up its stores in france. people are still getting their phones. back to you. >> i suppose that's the good news at the end of the day. thanks very much indeed for that. beautiful shot in paris. meanwhile, while no one is cuing up to buy blackberries. >> we haven't been able to get service all morning. >> vodaphone coming out saying we're on those contracts. blackberry got service problems in the uk with e-mail and internet. they can't tell us when they'll be fixed. >> but it does seem to be a major outage and we had a series of major outages.
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>> main uk outage for vodaphone users on blackberry. so it's not you. it is not you. there is a problem. all right? now, of course while apple has been a runaway success of investors over the past couple of years, how are smaller tech companies gaining ground in the sector? a company that listed back in june and i asked the ceo what made it a success. >> we went public without raises venture capital before it got there. we always built products for the marketplace. we were growing organic. secondly the technology is completely unique. we're about to hopefully get a patent granted in a way that you can do active replication over a wide area network. which is a big mouthful, but
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very important in the way that software is developed. thirdly, we have a very interesting business model, so we make an open source product called sub version that's used by millions around the world and we monetize that for enterprises. so i think those three things, of course we're a high growth company. i think the market appreciates a high growth tech company. and there are so few in the market. >> interesting that we were talking about the comparisons with -- he thinks there's a real issue in the structure of the uk in terms of encouraging tax i incentiv incentives. he thinks they should change the regulations and be more tax incentives. and he thinks there's a problems with funding. meanwhile, oracle's first quarter profits strong software sales upset weakness in hardware. total revenues slipped 2%, slightly lower than expected. company cite as strong dollar.
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they predict software licenses will climb in the second quarter. their stock is down 1.3% in frankfurt. p. >> and of course yesterday we had verifone ceo on the program talking about getting in to the mobile payment space. oracle certainly looking to diversify. still to come on the program, the meeting of the debt club is going on. we'll bring you the latest from rome.
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italian finance minister says the country has no intention of asking for help from the ecb or the eu bailout fund, this as the government sha/s it frooft grow its forecast growth.
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silvia is there. anything going to come out of the discussions today? is it a collection of the weak? >> i think it's more a case of comparing notes. inside the bailout program cups, the outside the bailout program countries. and maybe they can compare notes and align strategies as to move forward with the reform process and as far as italy and spain is concerned, avoid a bailout program. italian minister says he won't ask for help. we've had similar sounds out of madrid from rajoy. so it remains to be seen whether they can avoid a bailout. the verbal intervention, announcement of the o.a.t. program helped narrowing the spreads. german yields kind of almost
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moved into positive territory again as we've seen with the latest yield play. and the top has come off sort of the panic button mode as we've seen on spanish and italian yields. whether that is going to last, whether this is going to sort of evaporate as we move closer to the setting up of the year's end of the summit remains to be seen. at the moment, a little bit more smiles. >> yes. not a bad thing to do. thanks very much for that. nice to cecsee still tree a oii sunglasses. something going on good in the world. details of the discussions are expected to be unveiled next thursday. spain is also exploring other aid measures according to journal sources. they may use leftover funds from a banking bailout to buy its own
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debt. reports suggest 40 billion, leaving 60 billion to shore up investor confidence. but we talked about that's not going to happen. >> let's ask viewers what should spain do with the extra 60 billion if they only really need 40 for the banks. >> the point is they need the extra 60. >> the point is they won't get the extra 60. we'll see. >> they are, because they need it. >> speaking of bonds, take a quick look at with a we're seeing on the bond wall this morning. spain among the only place where we're seeing some relief. prices a little bit yield down 5.77% in the wake of its three and ten year option. yesterday italy a bit higher on the morning, 5.05%. bunds and gilts also moving up. and this story developing this morning. turns out r.i.m. is having a blackberry service issue affecting europe, middle east and africa. the company says support teams are working to resolve the issue
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and it comes after vodaphone had reported experiencing service problems and we could have reported those ourselves this morning. but it does seem as though there's it actually a wider potential outage on iphone launch day no less, ross. >> exactly. and maybe it will add to the queues. i want something that works. still to come, we'll be outside apple's fifth avenue store plus all the details on oracle's first quarter results.
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welcome back. here wiare your headlines. crowds are building as people in parts of asia, europe and the u.s. line up to be among the first on the plan toet to get tr hands on the new iphone 5. >> and a flurry of reports on spain suggest the finance ministers negotiating the terms of a full bailout that spanish banks will needless capital than thought. and that there's a plan to buy bonds on the table.
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can we continue our string of positive fridays in the u.s.? it's pointing that way at the moment. dow jones implied to open higher by 40 points. but we're coming off gains we saw earlier this morning. take a look at what's been happening across europe. for the most part across the world, it's been a pretty green picture, although we're starting now to see signs of that coming off. again the ftse is in negative territory, down less than 0.1%. xetra dax higher by about a third of a percent. 7414 is the level there. cac 40 up 0.6%. spain rebounding after losses earlier in the week and after an auction yesterday where it was able to access markets more cheaply than a month ago. up 1.2% is the level this morning. >> that's where we stand right now. but what are investors to do? here's a recap of what some of the experts have already told us this morning. >> i don't like bonds.
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i come do quite equities. we're bund ound it see some inflation. so real assets are probably the areas you want to be looking further out. >> i see the dollar weakening. probably the aussie, as well. also brazil to some degree. so i think we'll see that move. >> i would be back in consider m core markets until we see firm news coming out of spain. i think there's room for bunds, ten year bund yields to sort of come back towards the lows that we've seen previously down towards sort of the 120, 140
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range. >> well, it's early hours in the u.s., but kb home reporting four cents a share with revenue of $424.5 million. that is slightly below estimates of $430 million. it says it third quarter view -- let me be clear. it takers to have reported four cents compared with a loss that was seen for the quarter. again revenue a bit shy. says its order backlog increased 18% on the year to over 3,000 units. it says it delivered about 1700 homes in the quarter, that was up 7% from the year earlier. and net orders were up 3% from a year earlier. so perhaps a bit softer. we'll keep an eye on kb shares once u.s. markets open there this morning. in the meantime, though, or came ra kell's first quarter profits rose 11% and that was in line with forecasts. total revenue slipped 2%.
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company cited the strong dollar. analysts say oracle had a weak start to its fiscal year. the company does predict software licenses will climb 5% to 15% in the second quarter. and joining us for more is daniel ives. good morning. hasacle come out with a view that investors can get behind? >> yeah, the core growth driver software licenses and that was slightly better than expectation also gave a healthy outlook going forward and it really feels like their strategy on the cloud as well as just gaining more share in the enterprise is really starting to gain foot. >> we've seen oracle popping up in a bunch ever nof new markets. vodaphone is partnering up on
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mee mobile page, trying to get in on banking or trading platforms. is this a company trying to find its way, looking to diversify, or just generally wants to stay wherever the next big thing is? >> they're always looking in their krystal ball thinking where the market's going. and that's been a key part of their success, whether it's organically or through acquisitions. this is a company that has continued to stay ahead and it's continued to become one of the leaders on the enterprise. and i think you've seen that even as evidenced by last night's quarter, it's a choppy environment. but they're still performing well in regards to the macro. >> still there were signs of weakness and they have struggled with some client business comig from government customers. going forward, is oracle expected as a barometer of the broader industry to be insulated from some of the more serious
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profit warnings we've seen at other technology firms? >> i think they're more insulated than others given some of the secular trends, but obviously macular will hurt them. going forward when you look at the secular trends, as they're doubling done on the cloud, that will be a big initiative over the next 18 to 24 months. >> with all these problems in the hardware business, are there areas where they should be investing in hardware? >> higher areas of the hardware piece has been the focus. so again, i think they have the
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right strategy, they're looking for more of the unified sale. but with that said, software is the growth engine. hardware will be a big piece of their strategy going forward. but at this point, all cylinders are firing and it feels like the hardware business directionally is moving where investors want to see in terms of focus on the healthy growth areas. and the caother pieces they're starting to sunset. >> any read through to the competitors? interest t >> the read through, it's a tough environment, but it performed pretty well. because again, software licenses which are slightly better than expected, i think overall for software, it's obviously not a great environment, but it does show that things are slightly improving especially in the u.s. and asia.
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and i think given the outlook, it's a positive outlook for software going into the seasonally strong fourth quarter. >> all right, daniel, thanks for joining us this morning. still to come, apple fans have been lining up for days it get the new iphone. some are just there for the experience. we'll be live outside the apple store on fifth avenue in new york city. bob...
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oh, hey alex. just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no need to get nasty. here's your "honk if you had an affair with taylor" yard sign. looks good. [ male announcer ] fedex office. save 50% on banners.
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welcome back. wayne swan has joined the fray of partisan commenters on u.s. politics saying the greatest threat to the global economy are the, quote, cranks and crazies that have taken over a part of the republican party in the u.s. we asked about this earlier on the 3r578. one viewer tweets in to say the problem isn't cranks and crazies, it's everyone's inability to get along. so with a do you think abohat d?
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you can e-mail us of course here on world wild exchange. and you can also tweet us, cnbc wex. >> and meanwhile if you're a blackberry user, you have more problems. vodaphone says customers in three regions have problems accessing internet or e-mail. so another major outage on this side of the world. europe, italy and africa, as well. r.i.m. stock yesterday down 4%. and they didn't need an outage like this of course on the same day that we have the launch of the iphone 5. >> apple's latest smartphone has already gone on sale across asia. crowds outside the store in
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sydney stretched around the block. and even steve wozniak had to wait in line to buy his iphone 5 at a store near brisbane. the launch hasn't come without complaints. consumers and critics particularly aren't happy with apple's new mapping app which has placed in the new ios. shares down about a quarter% in frankfurt trade. natalie morris is outside the store on fifth avenue. fans have been lining up for days. >> for days, that's right. there is a very long line these people in line, they're very zealous. the story would be probably more interesting if there weren't a line because we've come to expect that from apple launches. but really some of these people have been out here all week and it was not good waiting in line weather. we had a big storm here in line this week. but nevertheless the people in the front of the line have been here since wednesday. >> a lot of us doing it for the experience, just coming out and
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it's not so much that we're all excited about the teen. most of us are. it's that why else and where else can you get away with doing something like this. >> it's a good experience. you're among friends and i've been here in the past, so i know a couple of people here. >> i sold my old phone to help pay for this one. i just wanted to make sure i get it today. so that's why i'm going through all this. >> wednesday is when the early reviews of this phone came out and they are very good. reviewers are liking it. the map is a point of contention also the fact that they changed the charger. but these people don't seem to really care. they're out here for the experience. and it's worth noting that this phone is really beating the pants off of iphone 4s. in reorders, they sold 2 million phones in just 24 hours. and if you order online now, you have to wait three to four weeks to get that phone. so you got to want it and the people behind me, they really do. >> three to four weeks, the
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horror! what's really interesting to keep in mind as the people you're in line with, some people are literally just taking in the experience. >> that's true. i'll admit i'm the kind of person who will go to a midnight showing of the harry potter movie. and i don't do it because i don't think i'll otherwise be able to seat movie, i do it because i want to be around other enthusiasts or nerdses you might say. and that's what this is about. people get really excited about an iphone so they want to be around other people who are just as excited. >> now we know you have a weakness for their harry potter. and there won't be a next time. >> what are you going do? you have a new bond movie coming out. go for that one.
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you know, this is what this guy said. where else can you do something like this. hang out on a pavement all night? >> but not for the launch of the iphone 5. >> what he should have said is when else can you do something like this. and i guess where being in new york, if you're going to do it, you might as well do it at one of the stores. >> camping out on a pavement. where else can you camp out on a pavement all night. >> i knew you cooperakoop would behind that one. >> in the happening. well, it is clearly happening, but not here. didn't take long for some to figure out what makes up the guts of the iphone 5. they pried it open and say it uses chips from qualcomm, sky work solutions. the smart phone got its memory chipses from sk hynix and a guy row scope from st micro. no mention of samsung. apple may have replaced it with its own processor.
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>> ihs has added up the cost of making the iphone and it comes up to $207 for the parts and assembly. and it looks like they're selling it for $199, but they're actually selling it for $649. it's just the lower price comes with the new two year contract. >> cell phone contracts is not the easiest thing in the world and the discounts for the hand sets. anyway, here are the stocks of all those companies involved. only qualcomm today is trading slightly higher. i love that a 6 processor, though. >> you're watching worldwi"worl exchang exchange". these are your headlines. the iphone 5 goes on sale. >> reports suggest spain's finance ministers are negotiating the terms of a full
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bailout. >> and oracle software sales offset weakness in hardware. >> and today is quadruple witching today. the s&p 500 has closed up three quarters of the time over the past 12 years. i love the stats. we'll find out if there's a reason why.
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♪ [ male announcer ] introducing a stunning work of technology. introducing the entirely new lexus es.
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and the first-ever es hybrid. this is pursuit of perfection. it's dawn in new york, dusk in hong kong. anyway, big news for universal and em ichi. eu regulators have now cleared universal music groups $1.9 billion bid for the recorded
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music division of emi. but they are demanding universal sells many of emi's most treasured record labels and the accompanying global rights. they also sell their now music competition. can they keep beatles, that's what i was going to ask. they'll sell a lot of other things, but keep the beatles. that's kind of i think what we were expecting on that. now they can finally go through. brazil's finance minister has told cnbc that he's ready to take action to protect the brazilian real. more quantity difference easing could reignite global currency wars. beccy meehan caught up with him in london.
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>> at the moment we didn't have it yet because they don't take the measure. they only announce the measure and the fact is we have expectations to the devaluation of the dollar, but we don't have much in-flow of money, of currency in brazil yet. but we are ready to stop the devaluation of the real that we can have if the in-flow comes. >> warning again of more currency wars. the dollar against the real pretty steady right now. it is worth pointing out the dollar has been weaker across the board as we go into the u.s. trading session. >> futures pointed higher this morning. still looking for the dow to add about 35 points and that would continue it string of positive fridays. meanwhile, though, pimco's bill gross says he sees no end to the
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quantitative easining programs until u.s. unemployment hits below 6%. he thinks the u.s. will enter a reflationary instead of an inflationary cycle and recommends i think investors builds portfolios in developing companies with shorter duration assets. they cut expes sure osure to u. treasuries by a third. and todd horowitz is joining us from chicago. bill gross thinks the fed moves until it's 6%. fed official from minneapolis saying 5.5%. so should we back away here and expect the fed to get even more aggressive? >> i don't think the fed really can get too much more aggressive. i think it looks to me they've kind of fired their final shot here. they've come back into it and came back to bailing out the banks. and right now buying those
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mortgage backed securities. and i think they're done really with what they can do. i think they're going to -- we're going to to have it now get out of this on our own. they won't be able to do much more. i think they're really put out the final shot that they can put out. >> let's focus on some of the details of the technical markets. there is all this focus on quadruple witching. why is the market typically up on those days? >> typically you have a lot of baskets of stocks getting cleaned out, people using options against the baskets. so we get a lot of buying typically on this friday. but now in today's world of trading, triple witching is more of a fairy tale now than a real trade. because the bonds and currencies have already expired. so we really are down just the option expiration on this friday. 20 years ago, everything expire order this friday, so we have some major movement.
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now it's been pre-ordained where we get things moved and it may be less volatile in this market. the market itself is extremely -- has no volatility and no volume and really no interest right here. we're just kind of vacillating around in a level waiting for something to possibly happen. and it looks to me as if we're going to have probably this could be the end of a rally and we'll be looking for some sort of correction in here. >> todd horowitz, chief strategist joining us from chicago this morning. thank you very much. and no surprise not much to the triple quadruple witching things anymore even though people like to talk about them. >> that is it for the week here on wr"worldwide exchange." plenty more to come "squawk box." >> we'll see you back here on monday morning.
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. today's top stories.wait is finally over. apple lovers lining up in stores to buy the iphone 5. and you are row crisis, spain reportedly in talks with the european union about a bailout. and decision 2012. gnaw po new poll results from three crucial swing states. it's friday, september 21st, 2012. "squawk box" begins right now. >> good morning. welcome to "squawk box" here on cnbc. i'm becky quick along with joe ke